Diplomat Pharmacy, Inc. (NYSE: DPLO), the nation’s largest independent provider of specialty pharmacy services, announced financial results for the quarter ended September 30, 2018.
<table align="center" width="100%"> <tbody> <tr align="center" width="80%"> <td width="5%"> </td> <td align="left" width="90%"> <p><span class="xn-location">FLINT, Mich.</span>, /PRNewswire/ -- Diplomat Pharmacy, Inc. (NYSE: DPLO), the nation's largest independent provider of specialty pharmacy services, announced financial results for the quarter ended <span class="xn-chron">September 30, 2018</span>. All comparisons, unless otherwise noted, are to the quarter ended <span class="xn-chron">September 30, 2017</span>. Prior period financials have been recast to include certain direct expenses as part of cost of sales instead of selling, general and administrative ("SG&A") expense for our specialty segment. This change is a reclassification only and has no impact on overall results.</p> <div class="PRN_ImbeddedAssetReference" id="DivAssetPlaceHolder1"> <p><img alt="Diplomat Specialty Pharmacy (PRNewsFoto/Diplomat Pharmacy, Inc.)" src="https://mma.prnewswire.com/media/148820/diplomat_specialty_pharmacy_logo.jpg" title="Diplomat Specialty Pharmacy (PRNewsFoto/Diplomat Pharmacy, Inc.)" /></p> </div> <p>Third Quarter 2018 Highlights include:</p> <ul type="disc"> <li>Revenue of <span class="xn-money">$1,373 million</span>, compared to <span class="xn-money">$1,125 million</span>, an increase of 22% <ul type="circle"> <li>Specialty segment revenue of <span class="xn-money">$1,212 million</span>, compared to <span class="xn-money">$1,125 million</span></li> <li>PBM segment revenue of <span class="xn-money">$170 million</span>, which was not part of the business in the prior year period</li> </ul> </li> <li>Specialty segment total prescriptions dispensed of 230,000, compared to 222,000</li> <li>PBM segment total volume, adjusted to 30-day equivalent, of 1,931,000</li> <li>Gross margin of 6.8% versus 5.8% <ul type="circle"> <li>Specialty segment gross margin of 5.5% versus 5.8%</li> <li>PBM segment gross margin of 15.5%</li> </ul> </li> <li>EPS of <span class="xn-money">$0.00</span> per diluted common share versus <span class="xn-money">$0.01</span></li> <li>Adjusted EBITDA of <span class="xn-money">$41.9 million</span>, compared to <span class="xn-money">$23.2 million</span> <ul type="circle"> <li>Adjusted EBITDA margin of 3.1% versus 2.1%</li> </ul> </li> <li>Net cash used in operating activities was <span class="xn-money">$33.4 million</span>, compared to net cash provided by operating activities of <span class="xn-money">$38.3 million</span></li> <li>Net Debt, including contingent consideration, increased to <span class="xn-money">$646.7 million</span>, from <span class="xn-money">$609.2 million</span> at <span class="xn-chron">June 30, 2018</span></li> </ul> <p><span class="xn-person">Brian Griffin</span>, Chairman and CEO of Diplomat, commented, "Third quarter results were solid as we continue to successfully execute on our growth plan. Results were driven by strong Specialty segment growth and PBM performance. We recently opened our new state-of-the-art distribution and call center facility in <span class="xn-location">Chandler, Arizona</span>, furthering our efforts to provide the highest quality patient care nationwide. Every day we put our patients first, while at the same time investing in initiatives to drive further growth and productivity."</p> <p><b>Third Quarter Financial Summary:</b></p> <p>Revenue for the third quarter of 2018 was <span class="xn-money">$1,373 million</span>, compared to <span class="xn-money">$1,125 million</span> in the third quarter of 2017, an increase of <span class="xn-money">$248 million</span> or 22%. Revenue was comprised of <span class="xn-money">$1,212 million</span> and <span class="xn-money">$170 million</span> from our Specialty segment and our Pharmacy Benefit Management ("PBM") segment, respectively. The increase in our Specialty segment was driven by manufacturer price increases, approximately <span class="xn-money">$10 million</span> from our recent acquisitions, access to dispense drugs that were new in the past year and increased volume due to both payor and physician relationships. These increases were partially offset by a decrease in hepatitis C business versus the prior year period and reimbursement compression. </p> <p>Gross profit in the third quarter of 2018 was <span class="xn-money">$93.4 million</span> and generated a 6.8% gross margin, compared to <span class="xn-money">$65.1 million</span> gross profit and a 5.8% gross margin in the third quarter of 2017. Gross profit was comprised of <span class="xn-money">$67.0 million</span> and <span class="xn-money">$26.3 million</span> from our Specialty segment and PBM segment, respectively. The gross margin increase in the quarter was primarily due to the impact of our PBM acquisitions, partially offset by reimbursement compression in our Specialty segment.</p> <p>SG&A expenses for the third quarter of 2018 were <span class="xn-money">$83.4 million</span>, an increase of <span class="xn-money">$20.6 million</span>, compared to <span class="xn-money">$62.8 million</span> in the third quarter of 2017. This increase is primarily driven by an <span class="xn-money">$11.0 million</span> increase in employee cost, including employee cost for our acquired entities and a <span class="xn-money">$4.0 million</span> increase in share-based compensation. Also contributing to the SG&A expense increase was a <span class="xn-money">$7.0 million</span> increase in amortization expense from definite-lived intangible assets, inclusive of capitalized software for internal use, associated with our acquired entities. We also experienced increases in other SG&A expenses; including, rent due to the addition of our <span class="xn-location">Chandler, Arizona</span> facility, travel, consulting and professional fees, as well as other miscellaneous expenses. These increases were partially offset by a <span class="xn-money">$2.4 million</span> decrease in acquisition related expenses.</p> <p>Net income attributable to Diplomat for the third quarter of 2018 was <span class="xn-money">$0.2 million</span> compared to <span class="xn-money">$1.0 million</span> in the third quarter of 2017. This decrease was primarily driven by an <span class="xn-money">$8.1 million</span> increase in interest expense due to a significant increase in outstanding debt to fund our PBM acquisitions, partially offset by a <span class="xn-money">$7.6 million</span> increase in income from operations. Adjusted EBITDA for the third quarter of 2018 was <span class="xn-money">$41.9 million</span> compared to <span class="xn-money">$23.2 million</span> in the third quarter of 2017, an increase of <span class="xn-money">$18.7 million</span>.</p> <p>Earnings per share for the third quarter of 2018 was <span class="xn-money">$0.00</span> per basic/diluted common share, compared to <span class="xn-money">$0.01</span> per basic/diluted common share for the third quarter of 2017. </p> <p><b>2018 Financial Outlook </b></p> <p>For the full-year 2018, we are updating our previous financial guidance:</p> <ul type="disc"> <li>Revenue between <span class="xn-money">$5.5</span> and <span class="xn-money">$5.7 billion</span>, versus the previous range of <span class="xn-money">$5.5</span> and <span class="xn-money">$5.9 billion</span></li> <li>Net (loss) income attributable to Diplomat between <span class="xn-money">$(7.5)</span> and <span class="xn-money">$2.6 million</span>, versus the previous range of <span class="xn-money">$(11.0)</span> and <span class="xn-money">$0.5 million</span></li> <li>Adjusted EBITDA between <span class="xn-money">$164</span> and <span class="xn-money">$170 million</span>, no change to previous range</li> <li>Diluted EPS between <span class="xn-money">$(0.10)</span> and <span class="xn-money">$0.03</span>, versus the previous range of <span class="xn-money">$(0.15)</span> and <span class="xn-money">$0.01</span></li> </ul> <p>Our EPS expectations assume approximately 74,300,000 weighted average common shares outstanding on a diluted basis and a tax rate of (10)% and 40% versus (5)% and 32%, for the low- and high-end of the range, respectively, for the full year 2018, each of which could differ materially.</p> <p><b>Earnings Conference Call Information</b></p> <p>As previously announced, the Company will hold a conference call to discuss its third quarter performance this evening, <span class="xn-chron">November 6, 2018</span>, at <span class="xn-chron">5:00 p.m. Eastern Time</span>. Shareholders and interested participants may listen to a live broadcast of the conference call by dialing 833-286-5805 (647-689-4450 for international callers) and referencing participant code 7553049 approximately 15 minutes prior to the call. A live webcast of the conference call and associated slide presentation will be available on the investor relations section of the Company's website for approximately 90 days at <a href="https://c212.net/c/link/?t=0&l=en&o=2291624-1&h=2625192853&u=http%3A%2F%2Fir.diplomat.is%2F&a=ir.diplomat.is" rel="nofollow" target="_blank">ir.diplomat.is</a>.</p> <p><b>About Diplomat</b></p> <p>Diplomat (NYSE: DPLO) is the nation's largest independent provider of specialty pharmacy and infusion services. Diplomat helps people with complex and chronic health conditions in all 50 states, partnering with payers, providers, hospitals, manufacturers, and more. Rooted in this patient care expertise, Diplomat also serves payers through CastiaRx, a leading specialty benefit manager, and offers tailored solutions for healthcare innovators through EnvoyHealth. Diplomat opened its doors in 1975 as a neighborhood pharmacy with one essential tenet: "Take good care of patients and the rest falls into place." Today, that tradition continues—always focused on improving patient care. For more information, visit <a href="https://c212.net/c/link/?t=0&l=en&o=2291624-1&h=1797388202&u=https%3A%2F%2Fdiplomat.is%2F&a=diplomat.is" rel="nofollow" target="_blank">diplomat.is</a>.</p> <p><b>Non-GAAP Information</b></p> <p>We define Adjusted EBITDA as net income (loss) attributable to Diplomat before interest expense, income taxes, depreciation and amortization, share-based compensation, change in fair value of contingent consideration and other merger and acquisition-related expenses, restructuring and impairment charges, and certain other items that we do not consider indicative of our ongoing operating performance (which are itemized below in the reconciliation to net income (loss) attributable to Diplomat). Adjusted EBITDA is not in accordance with, or an alternative to, GAAP. In addition, this non-GAAP measure is not based on any comprehensive set of accounting rules or principles. You should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in the presentation, and we do not infer that our future results will be unaffected by unusual or non-recurring items.</p> <p>We consider Adjusted EBITDA to be a supplemental measure of our operating performance. We present Adjusted EBITDA because it is used by our Board of Directors and management to evaluate our operating performance. Adjusted EBITDA is also used as a factor in determining incentive compensation, for budgetary planning and forecasting overall financial and operational expectations, for identifying underlying trends, and for evaluating the effectiveness of our business strategies. Further, we believe it assists us, as well as investors, in comparing performance from period-to-period on a consistent basis. Other companies in our industry may calculate Adjusted EBITDA differently than we do and their calculation may not be comparable to our Adjusted EBITDA metric. A reconciliation of Adjusted EBITDA, a non-GAAP measure, to net income (loss) attributable to Diplomat can be found below.</p> <p><b>Forward Looking Statements </b></p> <p>This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include Diplomat's expectations regarding revenues, net (loss) income attributable to Diplomat, Adjusted EBITDA, EPS, market share, the expected benefits and performance of acquisitions and growth strategies. The forward-looking statements contained in this press release are based on management's good-faith belief and reasonable judgment based on current information. These statements are qualified by important risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those forecasted or indicated by such forward-looking statements. These risks and uncertainties include: our ability to adapt to changes or trends within the specialty pharmacy industry; complying with complex and evolving requirements and changes in state and federal government regulations, including Medicare and Medicaid; current or proposed legislative and regulatory policies designed to manage healthcare costs or alter healthcare financing practices; significant and increasing pricing pressure from third-party payors; the amount of direct and indirect remuneration fees, as well as the timing of assessing such fees and the methodology used to calculate such fees; the outcome of material legal proceedings; our relationships with wholesalers and key pharmaceutical manufacturers; bad publicity about, or market withdrawal of, specialty drugs we dispense; a significant increase in competition from a variety of companies in the health care industry; our ability to expand the number of specialty drugs we dispense and related services; maintaining existing patients; revenue concentration of the top specialty drugs we dispense; increasing consolidation in the healthcare industry; managing our growth effectively; our ability to drive volume through a refreshed marketing strategy in traditional specialty pharmacy; our capability to penetrate the fragmented infusion market; the success of our strategy in the PBM space; our ability to effectively execute our acquisition strategy or successfully integrate acquired businesses, including any delays or difficulties in integrating the combined businesses, and the ability to achieve cost savings and operating synergies and the timing thereof; the dependence on our senior management and key employees and managing recent turnover among key employees; and the additional factors set forth in "Risk Factors" in Diplomat's Annual Report on Form 10-K for the year ended December 31, 2017 and in subsequent reports filed with or furnished to the Securities and Exchange Commission. Except as may be required by any applicable laws, Diplomat assumes no obligation to publicly update such forward-looking statements, which are made as of the date hereof or the earlier date specified herein, whether as a result of new information, future developments, or otherwise.</p> <p>CONTACT:<br /> <span class="xn-person">Terri Anne Powers</span>, Vice President Investor Relations<br /> 312.889.5244 | <a href="mailto:tpowers@diplomat.is" rel="nofollow" target="_blank">tpowers@diplomat.is</a></p> <p> </p> <div> <table border="0" cellpadding="0" cellspacing="0" class="prntblns"> <tbody> <tr> <td class="prngen2" colspan="11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>DIPLOMAT PHARMACY, INC.</b></span></p> </td> </tr> <tr> <td class="prngen2" colspan="11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Condensed Consolidated Balance Sheets (Unaudited)</b></span></p> </td> </tr> <tr> <td class="prngen2" colspan="11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>(Dollars in thousands)</b></span></p> </td> </tr> <tr> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen2" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>September 30,</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen2" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>December 31,</b></span></p> </td> </tr> <tr> <td class="prngen2" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>ASSETS</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2018</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2017</b></span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Current assets:</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Cash and equivalents</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,214</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">84,251</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Receivables, net </span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">358,158</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">332,091</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Inventories</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">169,863</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">206,603</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Prepaid expenses and other current assets</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">13,491</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">11,125</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen8" colspan="4" nowrap="nowrap"> <p class="prnews_p"> </p> <p class="prnews_p"><span class="prnews_span">Total current assets</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">549,726</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">634,070</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Property and equipment, net</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">40,924</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">38,990</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Capitalized software for internal use, net</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">29,842</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">36,520</span></p> </td> </tr> <tr> <td class="prngen6" colspan="5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Goodwill</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">834,580</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">832,624</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Definite-lived intangible assets, net</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">340,651</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">392,011</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other noncurrent assets</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">4,938</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">6,208</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen8" colspan="4" nowrap="nowrap"> <p class="prnews_p"> </p> <p class="prnews_p"><span class="prnews_span">Total assets</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen9" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,800,661</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen9" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,940,423</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen2" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>LIABILITIES AND SHAREHOLDERS' EQUITY</b></span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Current liabilities:</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Accounts payable</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">315,268</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">384,719</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Rebates payable</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">29,954</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">28,744</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Borrowings on line of credit</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">178,250</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">188,250</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Short-term debt, including current portion of long-term debt</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">11,500</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">11,500</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Accrued expenses:</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Compensation and benefits</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">16,771</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">9,584</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Contingent consideration</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">5,200</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,100</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">21,542</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">20,560</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen8" colspan="4" nowrap="nowrap"> <p class="prnews_p"> </p> <p class="prnews_p"><span class="prnews_span">Total current liabilities</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">578,485</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">651,457</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Long-term debt, less current portion</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">440,552</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">521,098</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Deferred income taxes</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">12,423</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">14,367</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Contingent consideration</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">4,050</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">4,000</span></p> </td> </tr> <tr> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">295</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen8" colspan="4" nowrap="nowrap"> <p class="prnews_p"> </p> <p class="prnews_p"><span class="prnews_span">Total liabilities</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,035,805</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,190,922</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Commitments and contingencies</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Shareholders' equity:</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Preferred stock (10,000,000 shares authorized; none issued and outstanding)</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Common stock (no par value, 590,000,000 shares authorized; 74,448,430 and 73,871,424 shares</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">issued and outstanding at September 30, 2018 and December 31, 2017, respectively)</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">629,283</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">619,235</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Additional paid-in capital</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">48,172</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">38,450</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Retained earnings</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">87,445</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">91,816</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Accumulated other comprehensive loss</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(44)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen8" colspan="4" nowrap="nowrap"> <p class="prnews_p"> </p> <p class="prnews_p"><span class="prnews_span">Total shareholders' equity</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">764,856</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">749,501</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen8" colspan="4" nowrap="nowrap"> <p class="prnews_p"> </p> <p class="prnews_p"><span class="prnews_span">Total liabilities and shareholders' equity</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,800,661</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,940,423</span></p> </td> </tr> </tbody> </table> </div> <p> </p> <p> </p> <div> <table border="0" cellpadding="0" cellspacing="0" class="prntblns"> <tbody> <tr> <td class="prngen2" colspan="16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>DIPLOMAT PHARMACY, INC.</b></span></p> </td> </tr> <tr> <td class="prngen2" colspan="16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Condensed Consolidated Statements of Operations (Unaudited)</b></span></p> </td> </tr> <tr> <td class="prngen2" colspan="16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>(dollars in thousands, except per share amounts)</b></span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen2" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Three Months Ended</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen2" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Nine Months Ended</b></span></p> </td> </tr> <tr> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen12" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>September 30,</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen12" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>September 30,</b></span></p> </td> </tr> <tr> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2018</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2017</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2018</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2017</b></span></p> </td> </tr> <tr> <td class="prngen6" colspan="5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net sales</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,373,334</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,124,957</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">4,131,896</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">3,330,161</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Cost of sales</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(1,279,976)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(1,059,867)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,849,743)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,128,595)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Gross profit</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">93,358</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">65,090</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">282,153</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">201,566</span></p> </td> </tr> <tr> <td class="prngen6" colspan="8" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Selling, general and administrative expenses</span></p> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(83,419)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(62,782)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(255,705)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(185,867)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Income from operations</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen15" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">9,939</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen15" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">2,308</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen15" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">26,448</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen15" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">15,699</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other (expense) income:</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Interest expense</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(10,179)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(2,054)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(30,998)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(6,034)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Impairment of non-consolidated entities</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(286)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(329)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">574</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">45</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,385</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">111</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Total other expense</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(9,891)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(2,009)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(29,942)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(5,923)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Income (loss) before income taxes</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">48</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">299</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,494)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">9,776</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Income tax benefit (expense)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">121</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">662</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(750)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(1,101)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net income (loss)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">169</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">961</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen17" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(4,244)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,675</span></p> </td> </tr> <tr> <td class="prngen6" colspan="8" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Less: net loss attributable to noncontrolling interest</span></p> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(55)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(299)</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net income (loss) attributable to Diplomat Pharmacy, Inc.</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">169</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,016</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen18" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(4,244)</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,974</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><u>Net income (loss) per common share:</u></span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Basic</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.00</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.01</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen18" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(0.06)</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.13</span></p> </td> </tr> <tr> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Diluted</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.00</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.01</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen18" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(0.06)</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.13</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="8" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><u>Weighted average common shares outstanding:</u></span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Basic</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">74,386,386</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">68,371,429</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">74,181,869</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">67,600,920</span></p> </td> </tr> <tr> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Diluted</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">74,741,511</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">68,769,618</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">74,181,869</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">68,259,416</span></p> </td> </tr> </tbody> </table> </div> <p> </p> <p> </p> <div> <table border="0" cellpadding="0" cellspacing="0" class="prntblns"> <tbody> <tr> <td class="prngen2" colspan="16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>DIPLOMAT PHARMACY, INC.</b></span></p> </td> </tr> <tr> <td class="prngen2" colspan="16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Condensed Consolidated Statements of Operations, Inclusive of Reportable Segment Breakout (Unaudited)</b></span></p> </td> </tr> <tr> <td class="prngen2" colspan="16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>(dollars in thousands, except per share amounts)</b></span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen2" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Three Months Ended</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen2" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Nine Months Ended</b></span></p> </td> </tr> <tr> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen12" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>September 30,</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen12" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>September 30,</b></span></p> </td> </tr> <tr> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2018</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2017</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2018</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2017</b></span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net sales - Specialty</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,212,298</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,124,957</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">3,599,023</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">3,330,161</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net sales - PBM</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">169,933</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">550,148</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Inter-segment elimination</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(8,897)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(17,275)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net sales</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,373,334</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,124,957</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">4,131,896</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">3,330,161</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Cost of sales - Specialty</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(1,145,288)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(1,059,867)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,386,653)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,128,595)</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Cost of sales - PBM</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(143,585)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(480,365)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Inter-segment elimination</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,897</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">17,275</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Cost of sales</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(1,279,976)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(1,059,867)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,849,743)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,128,595)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Gross profit - Specialty</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">67,010</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">65,090</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">212,370</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">201,566</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Gross profit - PBM</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">26,348</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">69,783</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Gross profit</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">93,358</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">65,090</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">282,153</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">201,566</span></p> </td> </tr> <tr> <td class="prngen6" colspan="8" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Selling, general and administrative expenses</span></p> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(83,419)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(62,782)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(255,705)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(185,867)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Income from operations</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen19" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">9,939</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen19" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">2,308</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen19" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">26,448</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen19" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">15,699</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other (expense) income:</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Interest expense</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(10,179)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(2,054)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(30,998)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(6,034)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Impairment of non-consolidated entities</span></p> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(286)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(329)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">574</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">45</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,385</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">111</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Total other expense</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(9,891)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(2,009)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(29,942)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(5,923)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Income (loss) before income taxes</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">48</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">299</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,494)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">9,776</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Income tax benefit (expense)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">121</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">662</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(750)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(1,101)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net income (loss)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">169</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">961</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen17" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(4,244)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen14" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,675</span></p> </td> </tr> <tr> <td class="prngen6" colspan="8" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Less: net loss attributable to noncontrolling interest</span></p> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(55)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(299)</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net income (loss) attributable to Diplomat Pharmacy, Inc.</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen20" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">169</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen20" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,016</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prnsbtbl prnsbr1 prnvab prnsbbd prntar prnpl6 prnsbl1 prnpr6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(4,244)</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen20" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,974</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><u>Net income (loss) per common share:</u></span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Basic</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.00</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.01</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen18" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(0.06)</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.13</span></p> </td> </tr> <tr> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Diluted</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.00</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.01</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen18" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(0.06)</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">0.13</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="9" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><u>Weighted average common shares outstanding:</u></span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Basic</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">74,386,386</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">68,371,429</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">74,181,869</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">67,600,920</span></p> </td> </tr> <tr> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Diluted</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">74,741,511</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">68,769,618</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">74,181,869</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">68,259,416</span></p> </td> </tr> </tbody> </table> </div> <p> </p> <p> </p> <div> <table border="0" cellpadding="0" cellspacing="0" class="prntblns"> <tbody> <tr> <td class="prngen2" colspan="11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>DIPLOMAT PHARMACY, INC.</b></span></p> </td> </tr> <tr> <td class="prngen2" colspan="11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Condensed Consolidated Statements of Cash Flows (Unaudited)</b></span></p> </td> </tr> <tr> <td class="prngen2" colspan="11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>(dollars in thousands)</b></span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen12" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Nine Months Ended September 30,</b></span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2018</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen5" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2017</b></span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Cash flows from operating activities:</b></span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net (loss) income</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(4,244)</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,675</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Adjustments to reconcile net (loss) income to net cash provided by operating activities:</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Depreciation and amortization</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">72,547</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">48,813</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Share-based compensation expense</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">15,771</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">5,487</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net provision for doubtful accounts</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">5,862</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">7,523</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Amortization of debt issuance costs</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">3,703</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">892</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Changes in fair values of contingent consideration</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">2,419</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,965</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Contingent consideration payments</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,181)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Deferred income tax benefit</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(2,034)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(637)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Impairment of non-consolidated entities</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">329</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(43)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="8" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Changes in operating assets and liabilities, net of business acquisitions:</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Accounts receivable</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(31,090)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">4,117</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Inventories</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">36,717</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">22,379</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Accounts payable </span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(72,018)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,055)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other assets and liabilities</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,469</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(2,514)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="2" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net cash provided by operating activities</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">33,207</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">93,646</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Cash flows from investing activities:</b></span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Expenditures for capitalized software for internal use</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(8,736)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,252)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Expenditures for property and equipment</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(7,880)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(3,414)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Payments to acquire businesses, net of cash acquired</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(1,139)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(76,646)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">46</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen10" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(38)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="2" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net cash used in investing activities</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(17,709)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(83,350)</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Cash flows from financing activities:</b></span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net payments on line of credit</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(10,000)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(17,663)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Payments on long-term debt</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(82,625)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(6,031)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Proceeds from long-term debt</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">25,000</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Proceeds from issuance of stock upon stock option exercises</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">3,999</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">7,597</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Contingent consideration payments</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(2,088)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Payments of debt issuance costs</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(821)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="2" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net cash (used in) provided by financing activities</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen16" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(91,535)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen22" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,903</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="2" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net (decrease) increase in cash and equivalents</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(76,037)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">19,199</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Cash and equivalents at beginning of period</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">84,251</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">7,953</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Cash and equivalents at end of period</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">8,214</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen11" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">27,152</span></p> </td> </tr> <tr> <td class="prngen6" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><i>Supplemental disclosures of cash flow information:</i></span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Cash paid for interest</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">27,707</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">5,125</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen6" colspan="6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Cash paid for income taxes</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">2,142</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">4,716</span></p> </td> </tr> </tbody> </table> </div> <p> </p> <p> </p> <p><b>Adjusted EBITDA</b></p> <p>The table below presents a reconciliation of net income (loss) attributable to Diplomat Pharmacy, Inc. to Adjusted EBITDA for the periods indicated.</p> <p> </p> <div> <table border="0" cellpadding="0" cellspacing="0" class="prntblns"> <tbody> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen12" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">For the three months ended September 30,</span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen12" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">For the nine months ended September 30,</span></p> </td> </tr> <tr> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen23" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2018</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen23" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2017</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen23" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2018</b></span></p> </td> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen23" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>2017</b></span></p> </td> </tr> <tr> <td class="prngen3" nowrap="nowrap"> </td> <td class="prngen2" colspan="7" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(dollars in thousands) (unaudited)</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net income (loss) attributable to Diplomat Pharmacy, Inc.</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 169</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 1,016</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ (4,244)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 8,974</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Depreciation and amortization</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">24,377</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">16,877</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">72,547</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">48,813</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Interest expense</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">10,179</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">2,054</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">30,998</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">6,034</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Income tax (benefit) expense</span></p> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(121)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(662)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">750</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,101</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">EBITDA</span></p> </td> <td class="prngen22" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 34,604</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen22" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 19,285</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen22" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 100,051</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen22" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 64,922</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Contingent consideration and other merger and acquisition expense</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 577</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 3,016</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 5,700</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 4,133</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Share-based compensation expense</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">5,649</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,688</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">15,771</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">5,487</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Employer payroll taxes - option repurchases and exercises</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">52</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">33</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">193</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">218</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Restructuring and impairment charges</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">286</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">329</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Severance and related fees</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">779</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">78</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">2,729</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">781</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other items</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">-</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(915)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(483)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(372)</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Adjusted EBITDA</span></p> </td> <td class="prngen9" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 41,947</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen9" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 23,185</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen9" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 124,290</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen9" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 75,169</span></p> </td> </tr> </tbody> </table> </div> <p> </p> <p> </p> <p><b>2018 Full Year Guidance: GAAP to Non-GAAP Reconciliation</b></p> <p>The tables below present a reconciliation of net income attributable to Diplomat Pharmacy, Inc. to Adjusted EBITDA for the year ended <span class="xn-chron">December 31, 2018</span>.</p> <div> <table border="0" cellpadding="0" cellspacing="0" class="prntblns"> <tbody> <tr> <td class="prngen2" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Reconciliation of GAAP to Adjusted EBITDA</b></span></p> </td> </tr> <tr> <td class="prngen2" colspan="4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(dollars in thousands) (unaudited)</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen12" colspan="3" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b> Range </b></span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen12" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>Low</b></span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen12" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span"><b>High</b></span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Net (loss) income attributable to Diplomat Pharmacy, Inc.</span></p> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ (7,511)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 2,593</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Depreciation and amortization</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">98,000</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">97,000</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Interest expense</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">43,000</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">41,000</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Income tax expense <sup>1</sup></span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">683</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">1,729</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">EBITDA</span></p> </td> <td class="prngen22" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 134,172</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen22" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 142,322</span></p> </td> </tr> <tr> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Contingent consideration and other merger and acquisition expense </span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 7,000</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 6,000</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Share-based compensation expense</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">19,000</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 18,500</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Employer payroll taxes - option repurchases and exercises</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">500</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 300</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Restructuring and impairment charges</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">329</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 329</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Severance and related fees</span></p> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">3,500</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen4" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 3,000</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Other items</span></p> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">(500)</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen13" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ (450)</span></p> </td> </tr> <tr> <td class="prngen6" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">Adjusted EBITDA</span></p> </td> <td class="prngen9" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 164,000</span></p> </td> <td class="prngen4" nowrap="nowrap"> </td> <td class="prngen9" nowrap="nowrap"> <p class="prnews_p"><span class="prnews_span">$ 170,000</span></p> </td> </tr> </tbody> </table> </div> <p> </p> <p><sup>1 </sup>Assumes a tax rate of -10 and 40 percent, for the low- and high-end, respectively.</p> <p> </p> <p> </p> <div class="PRN_ImbeddedAssetReference" id="DivAssetPlaceHolder2"> </div> <p id="PURL"><img alt="Cision" height="12" src="https://c212.net/c/img/favicon.png?sn=DE64413&sd=2018-11-06" title="Cision ID" width="12" /> View original content to download multimedia:<a href="http://www.prnewswire.com/news-releases/diplomat-announces-3rd-quarter-financial-results-300745023.html" id="PRNURL" rel="nofollow">http://www.prnewswire.com/news-releases/diplomat-announces-3rd-quarter-financial-results-300745023.html</a></p> <p>SOURCE Diplomat Pharmacy, Inc.</p> </td> <td width="5%"> </td> </tr> <tr align="center" width="80%"> <td width="5%"> </td> <td align="left" width="90%"><br /> <i><b>Company Codes: </b></i>NYSE:DPLO</td> <td width="5%"> </td> </tr> </tbody> </table>
